CHARACTERISTIC OF INCOME

1. RETURN ON CAPITAL
2. REALIZED BENEFIT
3. NOT EXEMPTED BY LAW

CLASSIFICATION OF TAXPAYERS
TYPES OF TAXPAYER EARNED IN THE PHILS EARNED ABROAD
INDIVIDUALS
CITIZEN
RESIDENT
NON- RESIDENT
ALIEN
RESIDENT
NON- RESIDENT
ETB
NETB
CORPORATION
DOMESTIC
FOREIGN
RESIDENT
NON- RESIDENT

SPECIAL CONSIDERATION

1. PARTNERSHIP
2. JOINT VENTURE
3. ESTATE
4. TRUST

TAX ACCOUNTING PERIODS

1. CALENDAR YEAR
o INDIVIDUALS
o TAXPAYERS WHO DO NOT KEEP BOOKS
o TAXPAYERS WITH NO ACCOUNTING PERIOD
o TAXPAYER WITH ACCOUNTING PERIODS OTHER THAN FISCAL YEAR
2. FISCAL PERIOD

*SHORT ACCOUNTING PERIOD

TAX ACCOUNTING METHODS

1. CASH BASIS
2. ACCRUAL
3. INSTALLMENT METHOD
4. PERCENTAGE OF COMPLETION

REVIEW: TAXATION
Mary Doll Maquirang, CPA
 5. FARMING INCOME
6. LEASEHOLD IMPROVEMENT

CLASSIFICATION OF TAX PAYER FOR ADMINISTRATIVE PURPOSES

1. LARGE TAX PAYERS

2. NON LARGE TAX PAYERS

DETERMINING NON COMPLIANCE WITH TAX OBLIGATION

1. LIFE STYLE CHECK

2. INVENTORY SURVEILANCE
3. MYSTERY SHOPPING
4. NETWORTH METHOD

PENALTIES FOR NON COMPLIANCE

1. SURCHAGRE
2. INTEREST
3. COMPROMISE

FINAL INCOME TAXATION

CERTAIN PASSIVE INCOME

1. INTEREST INCOME
2. DIVIDENDS INCOME
3. ROYALTY
4. PRIZES
5. WINNINGS
6. INFORMERS REWARD
7. FRINGE BENEFIT

REVIEW: TAXATION
Mary Doll Maquirang, CPA